Entrepreneurial Mindset: Going for a Billion, NOT Million, Dollar Company
Hi, friends! 👋🏽👋👋🏿Today’s story is all about stretching the possibilities. Francisco Cornejo is a serial entrepreneur who shares how his latest business venture (he started this one with his wife, Daniela) is vastly different from his other businesses.
In this article, you'll find out the following:
🌴The kind of company that can become a billion-dollar business vs. million-dollar business
🌴How he was able to start a tech business, even though he doesn’t have a tech background
🌴Questions to consider as you try to get your startup off the ground
🌴Now, allow me to introduce you to Francisco Cornejo…
ARE YOUR GOALS TOO SMALL?
“After starting Storybook, we were really happy with the results. We saw the impact… on families. But it took us a while to realize that, actually, this could be a billion-dollar company.”
Francisco Cornejo isn’t new to the entrepreneurship game. He founded two lifestyle/hospitality-related businesses early on in his career. But he admits there was a fundamental aspect he missed.
And then that missing piece hit him as he and his wife, Daniela Vega, co-founded Storybook, a “parent-child wellness sleep app.”
The Storybook app tackles bedtime through a combo of stories, infant massage & music
THE TIP JAR (Tips provided courtesy of Francisco Cornejo)
STARTING OUT: “When you’re younger and you don’t have responsibilities and a family, you can take bigger risks.”
Cornejo says, at this stage, “The risk is super low. That’s the time of your life where risk is going to be closest to zero. So, that’s the time to take the boldest risks and decisions...”
STEEPED IN SKILLS (mid-career): “Once you have family and the risk is higher, I think it’s important to be more cautious. You can start your own MVP (minimum viable product), your own thing on the side. It could be your pet project for a few months or even years.”
“Take… more precautions. But, again, I wouldn’t delay things… I’ve seen brilliant people with brilliant ideas…” But he says, these same brilliant people get stuck on “just reading and reading and reading. But if there’s no action, there’s no learning. So there has to be action. So start now.”
STARTING OVER: “If you have been working 30 years in a company, the amount of knowledge you have in a specific industry [is] really vast. It’s your most precious… asset. So use that knowledge. Try to find things that are broken in that system. There has to be something where technology could be super useful.”
Basically, think of a weakness or inefficiency in an industry you know well and apply technology to it.
I’LL NEVER DO THAT AGAIN: “Trying to do several things at the same time. That didn’t work.”
“There’s a saying… You can see many shiny objects… but that doesn’t mean you have to pursue them all at the same time.”
He says, “I think laser-sharp focus is a key that I didn’t have when I started. And I still struggle with that. It’s something that, every single week, I’m working on…”
BEST ADVICE FROM “LA CASA”/BEST “HOUSE” ADVICE: “Something that really comes with me from my family is to prioritize the person first.”
Cornejo says the advice focuses on “that human side of things, that caring for others first. I think that’s something that I’ve seen in my family..."
He says it guides the way he acts with others, as well.
Francisco with his family in Ecuador just before launching the app
MINDSET=EXPECTATONS=DREAM REALLY BIG
Like most other traditional entrepreneurs, he started out following the usual advice. “Build small and start small.”
He says, “I agree with that. That’s perfect. That’s great advice. Risk little.”
The part that was missing involves mindset - and how he now approaches expectations.
“Dream really big. I think that’s something they don’t tell you.”
It’s the difference between a more traditional company and the type that’s on a whole other scale.
HOW FAST CAN YOU SCALE?
“For me, it comes down to how fast can the company scale? So in a more traditional environment, a more traditional company, you expect the company to grow… 30% YOY (year-over-year) is a great accomplishment.”
Under that scenario, he says, if you reinvest profits, you build consistently over 50 years.
But with a tech startup, Cornejo says the time span is significantly shorter. Under this scenario, “You don’t want to have a legacy company of 100 years… You want to have a five year [or] 10 year massive scale.”
And that’s why Cornejo believes the right mindset must be there.
“If you’re dreaming [of] getting to a billion-dollar company in five years, you have to think entirely different[ly] than if you’re just wanting to grow 30% YOY.”
Francisco (lower right) with his team (2021)
QUESTIONS TO ANSWER
He says these are the questions you’ll have to consider:
-How much risk are you willing to take?
-How much of an investment are you willing to put into the company yourself (or how much money will you have to raise)?
-How ambitious will your goals be?
-How many people will you need on your team?
-How much time will this venture take (he says, for startups, this is critical)?
STOP FINDING REASONS TO WAIT; THE MARKET WILL HAVE THE FINAL SAY
Not wasting time takes on even more significance.
He put it in terms that some of us who are perfectionists or who feel the need to have every scenario gamed out will understand.
Cornejo explains, “Ultimately, the market will say what works and what doesn’t. It’s not your spreadsheet. It’s not your research. It’s not your market study. It’s the market.”
ACTION > ANALYSIS
That’s why he prioritizes action over analysis.
Keep in mind, Cornejo readily admits he didn’t have a background in tech. But working his network, contacts and assembling a team that consists of tech experts, he and Daniela were able to launch their app and achieve that necessary large scale quickly compared to his previous hospitality businesses.
TECH BUSINESS NEEDS ARE DIFFERENT THAN TRADITIONAL BUSINESS NEEDS
For example, for his previous traditional businesses, “We needed a physical space. We needed to have a lot of stuff.”
He says there were a lot of hands involved “to provide for meals, for a cocktail, for a service. In our case with Storybook, on day one, when we launched the app, we were already present with clients in, I think, 16 or 20 countries… with three people on the team.”
MAKING THE RIGHT DECISION: CHOOSE WHAT RESONATES WITH YOU
In the end, he’s not suggesting one is better than the other. Merely, certain entrepreneurs are better suited for one vs. the other.
"There are people that really enjoy creating these lifestyle businesses and going for that long run and doing things steadily. And there are others who really want to reach that goal as fast as possible and leave everything in… five or 10 years.”
So how did Cornejo and his wife come up with a winning idea for an app? And how did they know they needed to focus their efforts on this business over another they were also working on at the same time? You can find out in Part Two of my profile of Francisco Cornejo.
The force behind his business and life: Francisco with his wife and sons
INDUSTRY: Tech (Wellness)
STARTED BUSINESS:
1st business: 2007 (Sold in 2009)
2nd business: 2009
3rd business: Jan. 2020
LATINO CONNECTION:
Born in Ecuador
Parents are from Ecuador
EDUCATION:
RMIT (Royal Melbourne Institute of Technology) - Master's degree in Communication
UPAC (Universidad Panamericana de Cuenca - Ecuador) - Bachelor's degree in Business Administration
DREAM JOB AS A KID: “Even up to when I was 18, I had five different things in my head… ranging from astronaut to inventor.”
BIGGEST GOAL YET:
BUSINESS: “We are aiming to raise our Series A as early as Q1 2023. So that’s a big, bold goal for us as a company.”
PERSONAL: “I think I’m really working hard on being my best version of myself. That’s probably my main goal right now… my spiritual facet, my facet as a husband, as a parent, as a person…”
Cornejo even has KPIs (key performance indicators) on this goal.
NO NEED TO GO IT ALONE
HELP ON THE OUTSIDE...because we can all use a helping hand:
What Markets Should You Target?
This webinar will help you figure out which markets you should go after for your business. You’ll learn how to determine market potential in terms of revenue and profitability, plus some basics on defining your target markets.
While some of the webinar covers databases you can find at the Jacksonville Public Library, you can just look for the same at your local library. Here are the details:
SBA (Small Business Administration)
“Determining Product Profit Potential and Target Market”
Tuesday, Sept. 13, 2022
5:30 p.m. EDT – 7:30 p.m. EDT
Virtual Webinar
FREE
WORKING ON THE INSIDE...because we know our culture has a hard time asking for help:
What’s the Common Thread for Success?
From “learning to make quick decisions” to “listening when others speak”, Brett Farmiloe’s blog post for SCORE (Service Corps of Retired Executives) gives examples of habits that successful entrepreneurs share. It’s a quick but valuable read on fine-tuning certain behaviors to increase your chances of success. Take a look:
12 Habits of Successful Entrepreneurs | SCORE
INSPIRATION FOR THIS ISSUE:
So much of what we do is based on what we tell ourselves we can do.
Years ago, I don’t know how many people would’ve said that they were out to create a billion-dollar business.
Yet, anecdotally, I read about more people framing expectations in terms of “billions”, not “millions”, of dollars.
Blame it on inflation.
Just kidding – for the most part.
Well, this digital transformation that society is going through is a big part of it. I touched on it in the last newsletter.
In Francisco and Daniela’s case, they weren’t fazed that they didn’t come armed with a background in tech. Just because this kind of expertise was not in their personal toolboxes didn’t matter.
They believed they had an idea that could potentially benefit millions of people. So they just found the workaround: they found people who do have an expertise in tech who could help them make their idea a reality.
That’s why mindset is so important.
You set the limits. It’s why many of you have probably noticed I end my newsletters with #theskyisNOTthelimit. We’ve been told for years that the sky is the limit. Says who?
Exactly!
It’s up to you. That’s why I like reminding you that #theskyisNOTthelimit.
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